7-Eleven buys alcohol delivery start-up Tipple

DAVID SWAN
AUGUST 13, 2018
The Australian
7-Eleven has bought Melbourne-based alcohol delivery start-up Tipple, purchasing a majority stake in the company for an undisclosed sum.
As The Australian first reported in March, Tipple is Australia’s largest alcohol delivery start-up and is in the midst of a national expansion, growing from one bottle shop in Windsor to now servicing more than 120 suburbs across Melbourne and Sydney.
Tipple CEO Ryan Barrington told The Australian the average sale on Tipple is $70, double that of a bottle shop, and the company was also keen on expanding to other verticals besides alcohol.
7-Eleven was keen to take a sip of the action, with 7-Eleven CEO Angus McKay declaring his company was keen on expanding its interests across digital, delivery and in-store services.
Unlike in the United States for example, 7-Eleven stores in Australia don’t serve alcohol.
“Tipple’s business model and platform is well-aligned with [our] interests, and has grown significantly since starting up less than three years ago,” he said.
“While in time there may be interesting opportunities for the two businesses to explore and work together serving convenience customers, for now this partnership is about bringing our customer insights and marketing expertise to help accelerate the growth and expansion of Tipple as a stand-alone business.”
Mr Barrington said he ‘couldn’t be happier’ to be growing alongside 7-Eleven.
“Their expertise and capabilities are unparalleled, but it’s our shared ambition to create new and engaging customer experiences on the cutting edge of convenience that excites us most. We’re very excited about the potential for this partnership to transform the landscape of both alcohol and convenience retailing in Australia,” Mr Barrington said.
The deal comes as beverage giant AV InBev this month acquired Tipple rival Booze Bud, through AB InBev’s innovation division, ZX Ventures. That deal was also for an undisclosed sum.
Tipple was represented by Hillside Capital and Gadens as financial and legal advisers in the transaction.